Why Rising Lithium Demand May Exceed Lithium Production this Year Creating an Opportunity for Miners

Rhea-AI Summary

Global lithium demand expected to outmatch production, driving mining and revenues. Electrification of vehicles to boost lithium-ion battery demand. Government subsidies and investments to support market growth. Global lithium market size projected to reach $8.20 billion in 2023 with a CAGR of 12.3%. Indigo Exploration to deliver maiden lithium resource in early October. Lithium Americas shareholders vote in favor of separation. American Lithium announces process improvements for lithium carbonate production. E3 Lithium provides update on DLE technology results. American Battery Technology receives $57 million contract award for lithium hydroxide facility.

Positive

• Global lithium demand outpacing production, driving mining and revenues
• Electrification of vehicles boosting lithium-ion battery demand
• Government subsidies and investments supporting market growth
• Indigo Exploration delivering maiden lithium resource in early October
• Lithium Americas shareholders vote in favor of separation
• American Lithium announces process improvements for lithium carbonate production
• E3 Lithium provides positive update on DLE technology results
• American Battery Technology receives $57 million contract award for lithium hydroxide facility

Negative

• None.

FinancialNewsMedia.com News Commentary

PALM BEACH, Fla., Sept. 21, 2023 /PRNewswire/ -- Global lithium demand is expected to outmatch lithium production this year, which should spur mining and revenues in the market. Electrification of vehicles is projected to attract a significant volume of lithium-ion batteries, thus anticipated to drive the market over the forecast period. The automotive application segment is expected to witness substantial growth over the forecast period, driven by stringent regulations for ICE automakers imposed by government bodies to reduce carbon dioxide emissions from vehicles. This has shifted the interest of automakers toward producing electric vehicles (EVs), which is anticipated to benefit the demand for lithium and related products. Government subsidies for EVs, along with investments in this space, are likely to act as an additional booster to the growth of the market.  A report from Grand View Research projected that the global lithium market size, which was valued at USD 7.49 billion in 2022, is expected to reach USD 8.20 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 12.3% from 2023 to 2030.  The report said: "The U.S. holds major significance in battery production after China, which makes it one of the key lithium-consuming countries in the world. The country has huge reserves of this important metal. However, the country mines only about 1.0% of the total demand in the world. In 2022, the production took place at only one location in the U.S., which is a brine operation in Nevada. However, the country is expected to boost its mining capabilities in the industry over the coming years."  Active mining companies in the markets this week include:  Indigo Exploration Inc. (OTCQB: IXIXF) (TSX-V: IXI), E3 LITHIUM LTD. (OTCQX: EEMMF) (TSXV: ETL), Lithium Americas Corp. (NYSE: LAC) (TSX: LAC), American Lithium Corp. (NASDAQ: AMLI) (TSX-V: LI), American Battery Technology Company (OTCQX: ABML).

Grand View Research continued: "The market players in the U.S. are focusing on exerting control on the battery supply chain owing to the increasing production of EVs in the country... In 2018, the Interior Department listed lithium as a critical mineral, which paced up the mine permitting process.  LiOH is a white hygroscopic crystalline material and an inorganic compound mostly used by battery manufacturers; it is commercially available as anhydrous and monohydrate. It has usage in transportation applications in the manufacturing of submarines and spacecraft. In addition, rapid development in battery technologies is propelling the demand for LiOH, thus, driving the market growth. Many automotive players are inclined to adopt LiOH for battery manufacturing, which is expected to benefit market growth positively."

Indigo Exploration Inc. (OTCQB: IXIXF) (TSX-V: IXI) BREAKING NEWS:  Indigo Exploration to Deliver Maiden Lithium Resource in the Early October - Indigo Exploration Inc. (the "Company") is pleased to provide an update on the timing for its maiden lithium brine resource estimate for the wholly-owned Fox Creek West project in Alberta, Canada. Following on from the engagement of Sproule as announced on September 6, 2023, the Company and Sproule have been actively working on compiling the necessary information for Sproule to calculate an initial resource. Based on significant advancements in data compilation and geological modelling, Indigo has been informed by Sproule that the inferred resources are anticipated in early October.

"The delivery of a maiden NI 43-101 resource estimate for the first of our lithium brine projects represents a significant milestone for the team and Company" commented Paul Cowley, President & CEO of Indigo Exploration. "Working with one of the preeminent oil and gas engineering firms that has extensive experience in petroleum reservoirs and deep knowledge of the Western Canadian Sedimentary Basin, coupled with their execution of multiple resource estimates for lithium brine resources in Western Canada, is what allows us to expedite the delivery of a resource estimate with confidence. This is an opportune time for lithium and lithium brine projects given the current supply deficits driven by the increasing adoption rate of electrified transportation and recent advancements within the area with E3 Lithium's commissioning of the first DLE plant to process lithium brines."  CONTINUED… Read this and more news for Indigo Exploration at:  https://www.indigoexploration.com/news/news-2023.

In other market news of interest:

Lithium Americas Corp. (NYSE: LAC) (TSX: LAC) recently announced that shareholders have voted in favor of the separation of the Company into Lithium Americas (Argentina) Corp. ("Lithium Argentina") and a new Lithium Americas Corp. ("Lithium Americas (NewCo)") pursuant to a statutory plan of arrangement (the "Separation") at the Company's annual general and special meeting of shareholders held today (the "Meeting"). The Separation was approved by 98.85% of the votes cast by shareholders present or represented by proxy at the Meeting, as well as 98.78% of the votes cast excluding those of such shareholders who are required to be excluded pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.

"We are delighted to see our shareholders' overwhelming support for the Separation," said Jonathan Evans, Lithium Americas' President and CEO. "Following the Separation, the Lithium Americas (NewCo) team is committed to advancing the Thacker Pass project toward production to support the critical North American lithium supply chain. Meanwhile, the Lithium Argentina team will advance Caucharí-Olaroz toward full commercial production and pursue development opportunities in its significant growth pipeline in Argentina."

American Lithium Corp. (NASDAQ:AMLI) (TSX-V:LI) recently announced results of on-going process work on TLC claystones aimed at continued improvement and optimization of all phases of the chemical process to produce lithium carbonate ("LC"). Optimization work focused on leaching conditions and lithium recovery, minimizing lithium losses during neutralization and magnesium sulphate crystallization, and on increasing the LC purity in the precipitation stage.

Highlights Were: LC purity increased to 99.59% (up from 99.4%); Lower leach temperature of 50°C (down from 90°C), with continued high lithium extraction rates (95%); Significant potential for lower acid consumption; Potential for lower lithium losses during impurity removal; Further optimization work continues to refine flow-sheet for PFS; and Process improvements expected to enhance project returns.

Simon Clarke, CEO of American Lithium states, "We are very pleased with the latest optimization work on the TLC flowsheet as we move through pre-feasibility. The flowsheet continues to be refined with improvements and results that should improve on the already robust US$3.28 Billion NPV for the project highlighted in the Company's maiden PEA. We are able to make strong, rapid progress utilizing the expertise of TECMMINE in Peru, ANSTO in Australia and DRA Global, our Lead Engineers to drive TLC through the prefeasibility process. We also believe that our focus on large-scale projects in Peru and Nevada, which can produce high purity lithium products which do not need to be shipped overseas for upgrading or refining, best meets the critical need for secure supplies of battery metals in as fast a timeline as possible."

E3 LITHIUM LTD. (OTCQX: EEMMF) (TSXV: ETL), Alberta's leading lithium developer and extraction technology innovator, recently provided a preliminary update on the Direct Lithium Extraction (DLE) technology results at its field pilot plant.

Via its DLE field pilot plant, E3 Lithium is conducting a series of three predefined tests to review various operating conditions to understand anticipated performance in a commercial environment. Once all three tests are complete, E3 Lithium will select the operating conditions that produced the best results to run for a longer period.

The success of the longer operating period will confirm the results of the initial testing and will enable the commercial design of this system for both the Pre-Feasibility Study (PFS) and subsequent engineering designs. In addition, the lithium concentrate produced by the longer operating period will be used for the development of the lithium production system for the PFS and subsequent engineering designs.

American Battery Technology Company (OTCQX: ABML), an integrated critical battery materials company that is commercializing both its primary minerals manufacturing and secondary minerals lithium-ion battery recycling technologies, recently announced that it has received its $57 million contract award from the U.S. Department of Energy (DOE) for a multi-year project to design, construct, and operate its first-of-kind commercial-scale lithium hydroxide manufacturing facility in Tonopah, Nevada.

The receiving of this grant contract award marks a major milestone in the commercialization of ABTC's Tonopah Flats Lithium Project, which is designed to provide commercial-scale quantities of low-cost, low environmental impact, domestic critical mineral lithium hydroxide needed for the U.S. clean energy transition. Based on a recent third-party audited SK-1300-compliant Inferred* Resource Report, the Tonopah Flats Lithium Project is one of the largest known lithium resources in the United States, containing approximately 15.8 million tons of economically accessible lithium on a carbonate equivalent basis.

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